TELEPHONE & DATA SYSTEMS INC /DE/

The following discussion addresses certain captions in the consolidated balance sheet and changes therein. This discussion is intended to highlight the significant changes and is not intended to fully reconcile the changes. Notable balance sheet changes during 2026 were as follows:

Non-current assets held for sale

Non-current assets held for sale decreased $1,540.3 million due primarily to the sale of wireless spectrum licenses to AT&T, Verizon and T-Mobile in 2026. See Note 7 — Acquisitions and Divestitures in the Notes to Consolidated Financial Statements for additional information.

Other intangible assets, net of accumulated amortization

Other intangible assets, net of accumulated amortization decreased $21.4 million due primarily to amortization of TDS Telecom franchise rights.

Accounts payable

Accounts payable increased $80.8 million due primarily to increased capital expenditures, the timing of vendor payments, and the repurchase of TDS Common Shares.

Customer deposits and deferred revenues

Customer deposits and deferred revenues decreased $66.3 million due primarily to the recognition of the deferral of a portion of the T-Mobile purchase price related to T-Mobile's use of certain spectrum assets at no cost for up to one year from closing. See Note 2 — Discontinued Operations in the Notes to Consolidated Financial Statements for additional information.

Accrued taxes

Accrued taxes decreased $19.8 million due primarily to tax payments made in 2026 that relate to the 2025 tax year.

Deferred income tax liability, net

Deferred income tax liability, net decreased $128.1 million due primarily to reversals of temporary differences related to prior amortization of wireless spectrum licenses, triggered by the sale of wireless spectrum licenses to AT&T, Verizon and T-Mobile during 2026.

Long-term debt, net

Long-term debt, net decreased $154.6 million due primarily to the repayment of the TDS export credit financing agreement.